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Frequently Asked Questions
First-Time Homebuyer Program
Who is eligible to
apply?
Can I use this program
for to purchase a home outside of the City of
Miami limits?
Should I find a home
prior to applying for a loan?
What are the household
income limits?
What are the loan terms?
What types of properties
are covered under this program?
How do I apply for the
First-Time Homebuyer program?
Are there any
preferences?
Will my credit rating
affect my application process?
Is a Housing Quality
Standard (HQS) inspection required?
Do I have to attend a
Homebuyer Educational Training Program?
Do I have to repay the
homebuyer assistance loan?
What happens if I sell
the home?
Who is eligible to apply?
Any individual or
household who meet the following criteria:
1.
Property is located within the corporate limits
of the City of Miami.
2.
Property is a single family residence, a
townhome, or a condominium.
3.
Property must meet Housing Quality Standards as
per 24 CFR 982.401.
4.
Interested party must not have owned a home in
the past 3 years.
5.
Household income is less than or equal to, 80%
of median income adjusted for family size.
6.
Property owners must be able to afford a monthly
payment based on income and current debt.
7.
Must contribute at least $500 of personal funds
towards down payment/ closing costs.
8.
Must not be delinquent on any debt owed to the
City of Miami or Miami-Dade County.
9.
Maximum sales price is $236,000.
A “household” is defined
as immediate members of a family living together
who may be expected to contribute to the income
of the house for a substantial period of the
term of the loan. Households may also include
unmarried adults living in the same unit as the
applicant if they are expected to contribute to
the income of the household for a substantial
period of the term of the loan.
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Can I use this program for to purchase a home
outside of the City of Miami limits?
No.
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Should I find a home prior to applying for a
loan?
It is always better to get
pre-qualified by your financial institution
prior to looking for a home. In this way, you
will be looking for home in the price range you
are qualified to purchase.
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What are the loan terms?
The lesser of $40,000 or
the amount necessary for credit underwriting at
0% non-amortizing for 30 years. It is a
deferred-payment loan whereas if the homeowner
continues to own and reside in the property for
term of the loan, the entire principal and
accrued interest will be forgiven.
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What types of properties are covered under this
program?
1.
Single family residence.
2.
Townhomes.
3.
Condominiums.
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How do I apply for the First-Time Homebuyer
Program?
1.
Pick up an application for the First-Time
Homebuyer Program at the Department of Community
Development or at any of the City’s Neighborhood
Enhancement Team (NET) locations.
2.
Gather all documents listed in the “First-Time
Checklist”, under the header “Provided by
Homeowner.”
3.
Attend an approved Homebuyer Educational
Training.
4.
Contact a participating bank to obtain a loan
commitment and to be pre-qualified for a
mortgage loan, subject to a down payment amount
of $40,000.
5.
Search for a home in the City of Miami based on
your pre-approved loan amount and within the
maximum sales price limit.
6.
Have your lender provide you with a full
mortgage commitment.
7.
Fill out the First-time Homebuyer Program
application, include all proper documentation,
and submit them to your lender. Have your lender
submit your loan package to the City.
Are there any preferences?
No
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Will my credit rating affect my application
process?
You will need to obtain a
first mortgage from a participating financial
institution which will check your credit score
to qualify you for a loan. If you do not obtain
a first mortgage, you will not be able to
qualify for the First-Time Homebuyer Program.
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Is a Housing Quality Standard (HQS) inspection
required?
Yes, a City of Miami or a
contracted inspector will enter the property to
conduct an HQS inspection to ensure that the
minimum qualified property standards are met.
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Do I have to attend a Homebuyer Educational
Training Program?
Yes, in order to qualify
for the First-Time Homebuyer program, you must
successfully attend the Homebuyer Educational
Training program and obtain a certificate
through one of our training providers.
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Do I have to repay the homebuyer assistance
loan?
If you continue to reside
in the home you purchased for the full mortgage
term, the loan will be forgiven.
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What happens if I sell the home?
If the owner sells and/ or transfer the house before the end of the
City’s mortgage term, the following provisions
will apply:
1)
The sale of the property must be pre-approved by the City, and the
new buyers must meet the program’s income limits
in effect at the time AND the sales price must
not exceed the maximum affordable sales price in
effect at the time.
2)
For any ‘early’ sale or transfer, the City shall share in any
‘gain’ realized, based on its pro-rated share of
participation in the original purchase.
Furthermore, if the sale occurs within the first
3 years, the City shall keep 100% of its
pro-rated share of the ‘gain’, from year 3 up to
year 20, the City’s share of its pro-rated
‘gain’ shall decrease by 5% every year, while in
turn, the owner’s share shall increase by 5%
each year. At year 20 up to the City’s loan
maturity, the owner shall retain 100% of the
City’s ‘gain’.
3)
This above share gain proposal terminates in the event of a
foreclosure, with the lender required to provide
the City the right of first refusal to purchase
the loan at a negotiated price.
Example: In the event of a
resale
|
# of years owner lived at this
property |
City’s Pro-Rated Share of Gain |
Owner’s Share of Gain |
|
0-3 years |
100% |
0% |
|
3 years |
85% |
15% |
|
4 years |
80% |
20% |
|
5 years |
75% |
25% |
|
12 years |
40% |
60% |
|
15 years |
25% |
75% |
|
20 years or more |
0% |
100% |
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